Dear All,
i need advice whether company can issue equity shares on the basis of single valuation report to two different shareholders via private placement and via conversion of loan into equity.
Pulkit Singhania (Company Secretary) (30 Points)
06 December 2018Dear All,
i need advice whether company can issue equity shares on the basis of single valuation report to two different shareholders via private placement and via conversion of loan into equity.
Shrikant
(Associate)
(350 Points)
Replied 06 December 2018
Date for private placement and for conversion of loan into equity are same or different?
Pulkit Singhania
(Company Secretary)
(30 Points)
Replied 06 December 2018
Date for private placement and for conversion of loan into equity are different. whether company can get valuation report within short period of two months?
Shrikant
(Associate)
(350 Points)
Replied 06 December 2018
see here, after private placement of securities/shares, the valuation of shares will get changed.
Shrikant
(Associate)
(350 Points)
Replied 06 December 2018
why a company cannot get a valuation report in the short period of two months?
Pulkit Singhania
(Company Secretary)
(30 Points)
Replied 06 December 2018
yes. Company can issue shares on the basis of one valuation report?
Pulkit Singhania
(Company Secretary)
(30 Points)
Replied 06 December 2018
it is not possible for company to make valuation within short period of one month.
Shrikant
(Associate)
(350 Points)
Replied 06 December 2018
But after private placement of shares, valuation of shares will get changed so dont you it would be a possibility that creditors (whose loan gonna get converted) may not get their loan converted at proper price. So, how will you manage the same?
Pulkit Singhania
(Company Secretary)
(30 Points)
Replied 06 December 2018
both allotments are done to the promoters. conversion of loan into equity is made to holding company.private placement is made to promoter in individual capacity.
Avinash Kumar
(35 Points)
Replied 07 December 2018
Shrikant
(Associate)
(350 Points)
Replied 07 December 2018
CAclubindia
